For investors seeking investment opportunities in the Asia Pacific (APAC) region, Mintos is pleased to announce – Sun Finance offers new loans from Vietnam with returns of up to 14%. Vietnam is another addition to the Sun Finance Group as a part of its core expansion strategy in Asia. As part of the Group’s core strategy is growth in Asia, expansion in Vietnam is the next logical step to further establish its presence in the region, following Kazakhstan.
Since the foundation of the Group in 2017, Sun Finance has rapidly expanded its footprint in both Europe as well as Asia, offering financial solutions and access to capital to historically underbanked clients.
The South-East Asian region has great potential, having in total around 400 million unbanked customers. Sun Finance aims to unlock the vast potential of the financial world to many of the potential customers, with the contribution of investors in Mintos, offering them an opportunity to familiarize themselves with unsecured loans, as well as the ability to build their credit history and eventually transition into the banking realm.
Sun Finance launched its Vietnamese business in late Spring of 2019 and, as of 13 January 2020, has already disbursed around 120 000 loans worth € 6.5 million to 74 000 clients. As of 31 December 2019, Sun Finance Vietnam holds a net portfolio of € 1.7 million and has a Mintos Rating of “B-”.
Using algorithms to assess the creditworthiness
In order to ensure responsible and sustainable lending, Sun Finance assesses creditworthiness based on a wide range of many criteria, including information on the negative credit history of the customer, the data declared by customer in the application form, customers’ activities on social networks and ID documents provided by the customers during the application form. A wide list of algorithms currently is in place to analyze as many useful data points as possible in order to appropriately score each individual customer and provide them with an appropriate financial solution.
Sun Finance Vietnam in Mintos
Sun Finance places its Vietnam-issued short-term loans listed in the Euro (€) currency. Clients in Vietnam have access to loans in the range of 250 thousand VND (approx. € 10) to 15 million VND (approx. € 580). The average short-term loan is € 50 and increasing, while the average maturity of 22days.
All of Sun Finance loans are secured with a buyback guarantee and will be bought back by the company if they become delinquent for more than 60 days. In addition, the company will maintain 10% of each loan placed on the marketplace on its balance sheet.
In addition, the Group’s holding company AS Sun Finance Group (Latvia), will provide a group guarantee, thus providing another layer of investor protection.
To obtain exposure to Sun Finance loans, investors will be able to invest in loans issued by Mintos Finance to Sun Finance, where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Sun Finance will be pegged to a respective loan issued by Sun Finance to the final borrower. Mintos Finance is a Mintos group company. A detailed description of the new structure is available in the Mintos Finance loan agreement and assignment agreement.